tv German Chancellor Angela Merkel at World Economic Forum CSPAN January 25, 2018 3:24pm-4:00pm EST
announcer: january 30 marks the 50th anniversary of the start of the vietnam wars tet offensive, where viet cong and north vietnamese forces attacked more than 100 cities, towns, and outposts across south vietnam. american history tv will be live this evening at 7:00 for the discussion of the battle with mark boughton, author of " way, 1968." live coverage this evening over on c-span3. worldverage of the economic summit in dominoes, switzerland continues with chancellor angela merkel speaking on the future of europe and digital innovation. she spoke about the need for european countries to be at the forefront of technology, and the discuss of populism. [applause]
chancellor merkel: my colleagues, ladies and gentlemen, let me say i am delighted to be back in davos. let me remind all of us that, 1918, 100 years ago, the first world war came to an end, which is called the seminal catastrophe of the 21st century. even worse catastrophes were to follow. in a way, the political act is a -- almost sleepwalked into a her -- into a harangued a situation. we today, 100 years later, have to ask ourselves, when we have less and less people who have actually witnessed this time of the second world war, we have to ask ourselves how we learned the lessons of history? i think we haven't.
this generation, born after the second world war, one has to prove that we have truly learned the lessons. the lessons were of cooperation. a quarter of a century later, we have the end -- the cold war, the splitting of the world into two blocks. but then this was overcome. this opened up an opportunity. in 2008, there was a risk wants to the global financial crisis, where the g 20 was found. we, under the german presidency, had the motto "shaping an interconnected world." global cooperation is what we
tried to bring forward and in an environment that was not all that easy. we made progress. we had cooperation in the health sector. in partnership with africa. and the global steel firm which was a deal with dumping and fair trade. we also tried to strengthen the role of multilateral organizations. we tried to come out in favor of an open world trade system. it was a great challenge to mankind, climate change. we already had to draw our conclusions without the united states on climate change. still, climate change is a great danger. -- there ise are populism on the rise we see a , polarizing atmosphere and a polarized state of affairs. many people seem to worry will multilateralism find an answer to tackling the problems that people have, that mankind has, in a fair and equitable way?
and if you look at the challenge of the disruptive changes that technology offers this digital , change. many people seem to doubt it. in many countries. this is why i think, this motto, creating a shared future, an effective world, is the appropriate motto for the world that we see in 2018. frankly speaking, the country which i have the honor to represent, where i am chancellor, has difficulties. this polarization is something that we see in our country as well, which we have not had for decades. this is due to the fact that we have two sectors because of globalization. the euro crisis -- and we as -- with this -- and the challenge that migration has posed over the past few years. but let me tell you, germany and all the talks i currently hold and will continue to hold,
germany wishes to be a country that will lend its contribution also in future to solve the problems of the world together. we think that shutting ourselves off against the rest of the world, isolating ourselves will not lead us into a good future. protectionism is not the proper answer. we believe that, if we are of the opinion that things are simply not fair, that there is no reciprocity, then we have to seek multilateral answers to this and not pursue a unilateral protectionist course while we isolate ourselves against the other. obviously, it is of the essence that we form a government as soon as possible. in germany, i hope we will be able to do so. we hold talks. we are guided in those talks by two main thoughts. the first one is how can we
ensure a secure prosperity for the people of germany, for our country? right now we are in a very good , situation. we are doing very well. we have had growth for 11 can -- consecutive years. the last time that happened was in the 1950's. we have more people gainfully we have more people gainfully employed than ever before. we have sound finances. we have made an enormous progress in digitalization, in the economy. but let me be very open. we are not leading the way in other areas of the digital world. for example, society. the next year to come will have to be under the heading "let us bring digital into our education system." the state has to be digitized. people have to be able to communicate with their state representatives to digital. so we can make further progress, so we can again be the cradle of
innovation. this is a very serious challenge. we have no time to lose. we know other parts of the world are developing very quickly. we also see countries, such as estonia, for example, they just had their presidency in the european union, far advanced and germany is lagging behind. it is not leading in europe. at the same time, we know digitalization means there has to be lifelong learning. we have to deal with completely new solutions as regards social systems. that is to say we have to be aware of the fact that these disruptive technological changes invariably made disruptive changes for our society. and the readiness particularly in a society that is growing ever older, such as germany, there is not that much of a preparedness to get used to these new developments.
the question is not what can i distribute? but how can i ensure prosperity for the future? that is what we have to concentrate on. if we actually want to fulfill their promise of prosperity for all in the future as well in the new digital world, we need a social market economy, not only an industry. we also have to deal with the question how can we jot others into the fold, not leave them behind? that is a very important question for all of those countries. countries that are fractured will not be able to act in this cooperative spirit. there is a great danger that they will be inward looking and be left behind. invariably linked to the question of what is happening in germany and what is happening in europe. all these problems can only be
solved if we look at india, china, these giants, can only be solved with cooperation within the european union. it is obviously regrettable that the citizens of the united kingdom have opted for leaving the european union. this has almost encouraged us to concentrate on the big issues. let me say very clearly, with the french election of president macron, there has been a new impetus which will strengthen us. what will we have to do? at the time when not all of the members of the european union are saying we want an ever closer union, that is exactly what we want, we have to learn to find responses for the big issues in the union and try to solve those important questions by the people on the ground where they are. otherwise, we will not create a good climate for europe.
we have to develop our economic strength now that we have -- well, we haven't left behind the euro crisis completely. there is growth in almost all european countries. there is more employment. we have to re-orientate our economic policy, which means treating more of a digital single market. we are under great pressure because we have big american companies that have access to data. data will be the material -- the raw material of the 21st century. the question is who owns the data? we will decide in the end whether democracy, a social model, and a prosperous economic progress can be combined. in china, there is close collaboration between the authority of the state and thus to collect the data.
they are almost one in the same. europe has decided what to do with the data. +the danger that we will lag behind and been overtaken by events while we are debating philosophical issues. the model of a social economy gives us a good chance to share add net global digital age where it is not privately owned data the order of the day, but where we will see to it where data is shared in such a way that brings prosperity for our people. secondly, we have to strengthen the europe. we need a capital market union. capital markets are manufactured. we need to complete the banking union. we also have to reflect how we
can weather the crises on the horizon and how can we make ourselves so resilient that a liability is not community rise to and then everyone is liable. each and every country ought to manage its own liabilities. again, let us not shut ourselves off from others. let us keep pace with the best in the world. and lettuce cannabis for this multilateral approach. there is another important task ahead if we want to be taken seriously. we have to cooperate on the foreign front. a common european foreign policy has not yet been developed sufficiently. if we are not able to send a clear and unequivocal signal and
a united signal to countries such as china, such as india, such as the united states of america, if our foreign policy is made nationally and we tried to be a player in the world, we will fail. we have a lot of work still to do simply because we cannot be certain that we can absolutely rely 100% on each other. i'm very glad to know the presence of the minister defense. absurd discussions and in view of the future head, we have been able to initiate a european defense policy. this is important for two reasons. first, this is not a cooperation that in any way is against nato. we are very pleased and gratified to know that the nato secretary-general said -- he was present when it was founded --
he feels this is a compliment to nato can we also think this could be an approach to other countries, where we say we want to forge a common approach as regards security issues, as regards development issues, and economic issues. we would like to combine all of these issues and develop a coherent and consistent model with regard to africa, for example. why is this common foreign policy, common security policy so important and the economic policies are important? in europe immediate neighborhood, we have a large number of global conflicts. we have seen this. when globalization came to europe in 2015, it came home to us because of the -- when we saw the large inflows of migrants and refugees from syria. we did not deal with the issues,
for example, in libya and iraq and other places. my colleagues have outlined this great challenge through migration. we have i.s. on our threshold. africa is very close to us. syria is a neighbor of cyprus. so the fact that europe, in his foreign policy, has not been all that active in the past, we have often relied on the united states of america. but now they concentrate on themselves and their insecurity. all of that is to tell us a lesson. we need to take more responsibility. we need to take our destiny into our own hands. that is what we did by forging this new defense cooperation and also looking more at the challenges of migration.
we know there are still differences of opinion and differences of approach within the union on this, but we will continue to work on this. we are clear that we need to protect our external borders. what does this mean? europe is an interesting unity, if you like. we have given ourselves a common currency, but we never really reflected at some length what happens when the currency gets into danger. we are now working on the foundation, which we should have done in the first place. we were always very proud of the freedom of movement. you don't have to show your passport when you travel around the area. but we did not think that much about protecting our borders. have could we miss out on this? how can we never think of this? we felt safe and secure. now we have context. all of that was established in the past two to three years. ever since the roman empire, ever since the chinese were, we know only setting ourselves off doesn't help to protect her borders.
you need good cooperation with your neighbors. you need good agreements, valid agreements, that are respected. international treaties that are respected by each and everyone in order to try to manage this problem of illegal migration. this is what we did when we forged our partnership programs with africa and also the treaty with turkey. but we know we are responsible. because if the gap in prosperity becomes too large, and they will not be respected in an open world. we bear those responsibilities for the family and culture. we are responsible for what happens to iraq. we are responsible for what happens to libya. these inhabitants of been reluctant, but i think, slowly but surely, we have worked on this and also had some successes. there is a great convergence
within the european union, once the refugees are in the union. we do not yet have any unified opinion on this, but we are working on it. and it brings me to the challenge. only if we are economically strong will we have the necessary strength to forge such a corporation of ethics. this is the essence. it's very important. we have a great debt. from colonial times vis-a-vis africa. there are different levels of prosperity. this compact with africa for a very good reason was called a compact with africa because we don't want to have -- we want to be at eye level with our african partners.
and we want them to also share in the prosperity of the world. it is a completely new development in the corporation. there is one problem. let me come back to europe. we regret the u.k. will not be a member of the european union for long. tomorrow, you will receive my colleague theresa may. it for germany and for all of us, we want to have a good partnership. we will be very clear as regards to the question connected to the exit. the single market, it will be
the freedoms. we are very closely linked to britain. the economic policy, it is in their hands how close we want this partnership to be. we will be very open-minded. ladies and gentlemen, i tried to make it very clear to you what i see being essential in this world. willis have to start at home, but that we can overcome with divisions at home. the freer we will be to engage with others in multilateral forums. the solutions are always similar. let us never accept a situation where people are left behind, particularly in these times of enormous disruptive change. we spoke about this.
you are promoting networks that try to initiate dialogue between an economy and society, what would be ethically acceptable, a way of managing this new digital economy. if we don't manage it, we will have luddites. you live in your industry. while you view this of preconditions that you have not created, almost to come from a different age. help us to create the environment conducive to prosperity and also the future. if 20% or 30% can be convinced of the boom of the digital age and this disruptive technologies , this will not be sufficient. we need to find more people that
are in on this. they will simply not always be able to follow this enormous speed. they will be left behind and this is something that recently cannot accept. let me welcome very much these forums and issues. it is valuable we can prevent, in this way, making the mistakes of the 20th century again. the possibilities that are open with this new disruptive technological age are good, but they are also bad in the sense that they can create in or, -- can create enormous confusion, people feel left behind, they can be detrimental. we have create truly a social market economy. and cooperation in the world of tomorrow will work.
please keep your fingers crossed. thank you very much. [applause] >> chancellor merkel, you took the words out of my mouth. a platform between politics, the economy, and civil society. i think it is important that these new technologies are user-friendly. that we help society. with regards to technology, you spoke about data. you said that the new currency in the new society will probably be data. i would like to ask about data and artificial intelligence.
if you look at other countries, germany applies artificial intelligence that is not in terms of the development. is that a concern? chancellor merkel: i try to be very careful about this. the administration is working for her last. it is hard to say that information will need to be handled by an internet platform. when billion people are using internet platforms their whole life. that is the situation. for countries that come from a development state that are not quite as high, it seems to be
easier for people to leapfrog certain developments. in germany, we have two problems. the matters seem to work more or less. tomorrow, this will not be sufficient. people are not getting more curious. we have to do it in school, the educational sectors, we have to teach young people. and a group of countries you have very much a strategy of artificial intelligence. we have to be more focused, not for the research project here and there, but there is a franco german research policy on digital intelligence.
it will not be all that easy with intellectual property and the register that is limited. and for the time being, some of it is happening without being registered in the traditional ways. and this sense of urgency may perhaps not be sufficiently developed in parts of europe. the problem is, we will only be able to invest in these new areas. the old technology would not be sufficient. and we will also have to be vigilant and a sense that we have to have a competitive tax systems. while creating a situation where people have the impression where
big corporations don't need to pay taxes. france and germany, i don't think we ought to complain about the united states. we have to forge policies in line, but we have to in international competition. >> strength in europe and strength is solidarity in the area of foreign policy. in terms of defense policy, it was important. but you didn't mention the finance sector. how do you see that? would you think will happen in the future? will there be greater solidarity in the finance sector? >> internally, we need to strengthen the euro zone. capital market union is something i mentioned.
the banking union. and i think we need that. how far does each and everyone have to do his or her own homework. with all of the programs that he adopted at the european level, that was always the first question. and to what extent do a need to communitarize the safety mechanism, for those programs that work together with the imf. we would like to turn this more into a european monetary fund without, obviously, being able to do without the competence of the imf. we need their expertise. we have every respect for economic expertise, and we need this. we need the final backstop for banks to sort of get a better separation. the sovereign that -- debt.
at the european monetary. they spoke about the need for doing this. they need to develop this more. chancellor merkel: chancellor, you were saying that protection is not the right answer. can that multilateral be strengthened? >> what we see in the european union and the many of you that look at the outside, perhaps it is a cultural shock to see 27 or 28 members, it is multilateralism.
we have this in germany as well. and every time we have to find a compromise with them. it seems to be much faster. and immediately, a national response by others. the chairman communication is broken. i think it is well worth our while to act to have a patient with that interaction. >> if one looks at the known members from overseas, i think there is always a concern with regard to popular resume in
europe. we are talking 10% to 15%. is that likely to grow? or is it under control? chancellor merkel: i sincerely hope it's not going to grow. we are trying to get it under control, but it's a poison. anytime you have untold questions or untold problems, during the euro crisis, there was those living off of prosperity and you have a situation with migration, for example. a great influx of people. if that comes together with unemployment, it is a very poisonous mix where people feel
like we have to rely on the aliens and you have to have groups. it is very important to draw the right conclusions. it's the way of the greeks. when you start talking about other nations. you are actually generalizing. muslims are like this, christians are like this -- you have to look at every individual. but as long as you do not respect each and every persons individuality, and have your preconceived notion, that is the very basis of that option.
[applause] mr. schwab: ciao. this is perhaps a more personal type of question i would like to ask you. over the last few months, things have been a little bit difficult. you've been involved in difficult negotiations. and from my own perspective, i'm a bit older, i think that this is something that we learned from all these phases. they have experiences with this. what have you learned? chancellor merkel: 29 have have not yet brought those negotiations to a close.
patients is of the essence. havehere's something i become increasingly aware of is that people so you need a stable government. it is much more intensity than in the past. for the capacity of the country to act, i am very glad to be here in davos. how much changes during one month. how many things happen in? and how fast time moves these days. and if a country wants to give a contribution, around the clock. mr. schwab: the basis for a coalition agreement, your partner has signed off on this agreement last weekend.
i think that we can look at the future with a degree of optimism. and we would like to wish you, for the final stretch, all the very best. we are there and have been there to support you. thank you. chancellor merkel: don't pity me. mr. schwab: yes, we learn from you. chancellor merkel: thank you very much, and it's been a pleasure to be with you today. [applause] in 1979, c-span was created as a public service by america's cable-television companies. it is brought to you today by your cable or satellite provider. the u.s. house do in shortly for a brief session. they return monday from legislativ